Govt unveils policy to ease tax burden on businesses and middle-class families

KATHMANDU: The government has introduced a policy aimed at reducing the tax burden on entrepreneurs and middle-class households.

Presenting the government’s policies and programs at a joint session of the Federal Parliament today, President Ram Chandra Paudel said the existing tax structure would be reviewed to provide relief to entrepreneurial and middle-class families.

The government also announced plans to link all economic transactions to digital platforms in an effort to build a cashless, transparent and revenue leakage-free economy.

According to the policy document, the revenue system will be made more business-friendly through voluntary tax compliance, technology-based revenue administration and a fast-track mechanism for resolving tax disputes.

The government further stated that double taxation avoidance agreements would be signed with various countries.

A new policy has also been proposed to transform pollution-related, infrastructure and other fragmented taxes into a green tax system.

The policy and programme additionally mention measures to control low electronic payments at customs checkpoints. It also states that the refund system for all taxes, including value-added tax (VAT), will be made automatic and timely.

Furthermore, the government has pledged to implement a risk-based regulation, supervision and prosecution system in line with international standards related to money laundering control.